Brazilians’ electricity bills should rise by 5.6% on average in 2024, says Aneel

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In 2023, the average increase was 5.9% – below the initial projection of 6.8%. If confirmed, an increase of 5.6% this year will exceed the average inflation, projected at 3.87% by experts. Brazilians’ electricity bills should rise, on average, 5.6% in 2024, according to a projection by the National Electric Energy Agency (Aneel) released this Tuesday (23). The estimate is above the inflation projected for the period, of 3.87% according to financial market economists consulted by the Central Bank. In 2023, Aneel had estimated an average increase of 6.8% in distributor tariffs. However, the increase observed was 5.9%. Three factors influence the increase in the electricity bill: energy contracted in the captive market – the name used when the person cannot choose who to receive the energy from, and is “forced” to buy from the local distributor; the expansion of the transmission network; the subsidy bill, which has grown in recent years. Aneel annually readjusts the energy tariffs charged by distributors, on the concession’s “anniversary” date. The adjustments take into account factors such as the cost of energy generation and transmission, in addition to sectoral charges. The distributor’s own operating costs and inflation in the period are also considered. Understand your electricity bill Record value of subsidies In 2024, subsidies should reach the highest value in Aneel’s historical series, totaling R$37.2 billion. The charges paid by the Energy Development Account (CDE), which groups together the subsidies borne by the energy consumer. The majority of the value – R$32.7 billion (88%) – will be paid directly by energy consumers in 2024, through two charges included in electricity bills. The CDE’s revenue is: fines applied by Aneel; research and development resources not used by companies; amounts paid by hydroelectric plants for the use of public property; resources from the Global Reversion Reserve (RGR), a charge paid by generators, transmitters and distributors; contributions from the National Treasury; quotas paid by consumers. Over the years, with the increase in the CDE and the reduction in the Union’s participation in the fund, consumers had to bear most of the costs.

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